StudentShare solutions
Triangle menu

EC can be used to create strategic advantage for a firm - Essay Example

Not dowloaded yet

Extract of sample
EC can be used to create strategic advantage for a firm

Thus, it is important that an e-commerce strategic projection has to be incorporated in a company's strategic business plans. (King, et al, 2004)
For the purpose of this paper we shall examine the details of a specific Electronic Commerce tactic in this case the electronic data exchange and analyze the effects it has on three companies which are Amazon inc., MySpace Company and First American bank.
For firms, e-commerce implies using the web and the internet as a channel of distribution in marketing and selling of goods and also service to the firm's customers. This is a narrow definition, of e-commerce as it only describes internet commerce. E-commerce is much wider in what it entails. According to King, et al (2004) e-commerce is the exchange of information, services, goods and payments electronically and it involves formation and continuation of Web-based relationships. Thus, e-commerce encompasses the internet, extranets, intranets, electronic data exchange (EDE) and other electronic aspects. Examples of activities performed using e-commerce includes;
Internet has globalized this world and in the same e-commerce is global. Difference in cities or countries even does not affect e-commerce if you have any kind of crises you can log on from any where in the world and can solve your problem in a faction of a minute. Transaction is very fast and effective; many online business sites now offer sophisticated tools to help consumers manage all their assets more effectively and conveniently. (King, et al, 2004) A simple example of this can be taken from the simple accounting software e.g. in the banking sector. Some online banks provide to simplify record keeping. Another importance of e-commerce is that less paper work has to be done and once u have entered information, it doesn't need to be re-entered for similar consequent checks, and future payments can be programmed to occur automatically.
Importance of e-commerce on companies
E-commerce serves as a vital strategic tool for companies. When e-commerce is well used in companies it brings considerable opportunities to the company. The importance of e-commerce to companies can be classified in two main classes; the tangible advantages and the intangible advantages that are brought about by information technology. E-commerce is vital for many companies, today e-commerce has assisted many companies and organizations to revolutionize the manner in which they operate and manage their operations. Though, for a company to realize maximum benefits of e-commerce it must invest in the technology and manpower. (Chan, Lee, & Dillon, 2001)
Tangible benefits
The tangible benefits of e-commerce touches on the monetary aspect of the company, it touches on the financial benefits that occur due to the company investing in e-commerce that can only be measured using tangible metrics. For example, cost saving, market share, productivity and profitability of the company. These benefits enables the company to make a lot of saving and the money goes along way in improving other aspect of the company. (Chan, Lee, & Dillon, 2001)
Intangible benefits
T ...Show more

Summary

The explosion of electronic commerce in many business enterprises is creating a profound impact on organizations' business strategies. Competition rules are being redefined in many companies as technology advancement continuous specifically in the e-commerce…
Author : mohrsamanta
EC can be used to create strategic advantage for a firm essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"EC can be used to create strategic advantage for a firm"
with a personal 20% discount.
Grab the best paper

Related Essays

Strategic Management and Competitive Advantage
Many successful businesses boost their success by citing the work of their chief executives or other personalities who make enormous contributions towards success. Marketing efficiency of a company depends on company’s knowledge of the consumers. Scandinavian Airlines System is corporation that survived the odds in business by facing challenges and beating them.
6 pages (1500 words) Essay
How might an organization create and sustain competitive advantage through the strategic use of design thinking Your task for t
High innovation among the trading firms is notable within this era of globalization (Karen, 2010, p. 15). However, globalization is seen to be a threat to some extent as innovations are simply taking over the older ones thus necessitating constant innovation for organizations in order to be ascertained of survival within this current framework (Norgaard, 2012, p.
8 pages (2000 words) Essay
Methods used to Analyze the Marketability of a Firm
Methods used by some ventures are specifically tailored to their business. For example, a study was performed to determine marketability in December 2003 for thirty-two pay pond businesses in West Virginia. A fee is paid to fish in these ponds stocked by farm raised fish.
8 pages (2000 words) Essay
Analysis of the Firm and Competitive Advantage
By operating under this scheme, business firms can offer its customers products of exquisite quality without inflating its price. But before expounding on global value chain, the term value chain should first be clearly defined. The term value chain was first coined and defined by Michael Porter, in his Competitive Advantage book.
5 pages (1250 words) Essay
Critically discuss to what extent and how a Strategic HRM approach can help to create value and competitive advantage in an organisation
A company, during the course of its activities, will indulge into many kinds of management, be it be human resource management or public
8 pages (2000 words) Essay
Mergers, acquisitions and strategic alliance
Technological advancements and globalization have contributed to the process of M&A across borders (Shimizu, Hitt, Vaidyanath & Pisano, 2004). Industry consolidation
23 pages (5750 words) Essay
Analyse the processes used by an organisation to create and implement emergent strategic plans. Describe in detail the extraordinary management and shadow system processes used to support the emergent planning process and ensure that continuous and di
The difference between strategic planning and planning is accounting for competitor trends and future demand and planning a strategy that is
8 pages (2000 words) Essay
A firm that already has sustained competitive advantage in its domestic market may not have the same advantage in an overseas market. Discuss how to successful market entry and create competitive advantage in a new overseas market
The entry of a business firm in the overseas market can be anticipated to face certain critical situations due to varied market conditions and thus deliberate activities needs to be performed. Firms entering in the overseas market are
9 pages (2250 words) Essay
How might an organization create and sustain competitive advantage through the strategic use of design thinking Your task for this particular project is to promote the concept of Design-Thinking within a business organisation of your choice. Company begi
Roger Martin (2009) argues that the field of strategic management has been dogged by imbalances over the years with analysis taking over the role of validated intuition,
7 pages (1750 words) Essay
EC
I visited Indianapolis Zoo to see environmental conservation measures that are integrated in their systems. One area I noticed about the place is about waste recycling facility. The
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation